Redwood Trust (NYSE:RWT) Stock Passes Above 200-Day Moving Average of $6.53

Redwood Trust, Inc. (NYSE:RWT)’s share price crossed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $6.53 and traded as high as $6.68. Redwood Trust shares last traded at $6.55, with a volume of 934,674 shares traded.

Wall Street Analyst Weigh In

RWT has been the subject of a number of recent analyst reports. JMP Securities reaffirmed a “market outperform” rating and issued a $8.00 price objective on shares of Redwood Trust in a research report on Thursday, April 18th. Wells Fargo & Company decreased their price target on Redwood Trust from $8.00 to $7.00 and set an “equal weight” rating for the company in a research report on Wednesday, February 21st. UBS Group cut their price objective on Redwood Trust from $9.00 to $8.50 and set a “buy” rating on the stock in a research report on Tuesday, March 5th. Wedbush reaffirmed a “neutral” rating and set a $6.50 target price on shares of Redwood Trust in a research report on Wednesday, May 1st. Finally, Piper Sandler cut their price target on shares of Redwood Trust from $7.50 to $7.00 and set a “neutral” rating on the stock in a report on Wednesday, February 21st. Four investment analysts have rated the stock with a hold rating, four have issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $7.66.

Redwood Trust Stock Up 1.5 %

The firm has a market capitalization of $857.65 million, a P/E ratio of 92.71 and a beta of 1.56. The company has a debt-to-equity ratio of 10.66, a quick ratio of 9.09 and a current ratio of 9.09. The stock has a 50 day moving average of $6.22 and a 200-day moving average of $6.53.

Redwood Trust Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 28th. Stockholders of record on Friday, June 21st will be given a $0.16 dividend. This represents a $0.64 annualized dividend and a dividend yield of 9.86%. The ex-dividend date of this dividend is Friday, June 21st. Redwood Trust’s dividend payout ratio (DPR) is currently 914.29%.

Insider Activity at Redwood Trust

In other Redwood Trust news, CFO Brooke Carillo acquired 15,000 shares of Redwood Trust stock in a transaction that occurred on Thursday, May 30th. The stock was acquired at an average cost of $6.25 per share, for a total transaction of $93,750.00. Following the purchase, the chief financial officer now owns 56,772 shares of the company’s stock, valued at $354,825. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 2.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Redwood Trust

Institutional investors have recently added to or reduced their stakes in the stock. Wellington Management Group LLP lifted its holdings in shares of Redwood Trust by 164.4% in the fourth quarter. Wellington Management Group LLP now owns 11,314,715 shares of the real estate investment trust’s stock worth $83,842,000 after buying an additional 7,035,524 shares in the last quarter. Vanguard Group Inc. lifted its stake in Redwood Trust by 19.5% in the 1st quarter. Vanguard Group Inc. now owns 15,504,440 shares of the real estate investment trust’s stock worth $98,763,000 after purchasing an additional 2,530,937 shares in the last quarter. Mesirow Institutional Investment Management Inc. bought a new position in Redwood Trust in the 4th quarter valued at $13,246,000. Mirae Asset Global Investments Co. Ltd. boosted its holdings in Redwood Trust by 1,944.1% in the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 976,088 shares of the real estate investment trust’s stock valued at $7,233,000 after purchasing an additional 928,337 shares during the period. Finally, Ceredex Value Advisors LLC purchased a new position in shares of Redwood Trust during the 4th quarter valued at $4,502,000. Hedge funds and other institutional investors own 74.34% of the company’s stock.

Redwood Trust Company Profile

Redwood Trust, Inc, together with its subsidiaries, operates as a specialty finance company in the United States. The company operates through three segments: Residential Consumer Mortgage Banking, Residential Investor Mortgage Banking, and Investment Portfolio. The Residential Consumer Mortgage Banking segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer to its investment portfolio.